International News

Sep 13, 2019

2:24PM

Pakistan likely to miss IMF's tax refund condition

AIR Pics

Cash strapped Pakistan is set to miss the International Monetary Fund's condition to refund Rs. 75 billion to taxpayers despite an incentive by the global lender.

Under the IMF's six billion dollar loan deal, Pakistan is required to reduce the primary budget deficit, calculated by excluding interest payments, to Rs. 276 billion in the current fiscal year 2019-20 from last year's level of Rs. 1.350 trillion, the Express Tribune reported.

The International Monetary Fund (IMF) had offered to soften the tough primary budget deficit reduction target if the country performs better in tax refunds.

In the upcoming review of the IMF programme, Pakistan and the IMF will again discuss the refund payment target as the government's understanding is that the current year's refund payments should only be according to the current year's flow of refunds.